Consumer credit has grown rapidly in recent years. While consumer credit accounts for a small share of total household debt, it represents a substantial portion of household sector credit losses. Tax assessment data indicate that a considerable portion of consumer debt is held by older age groups. The high interest rates on consumer credit give lenders substantial lending capacity and enable them to absorb high losses. A substantial share of consumer credit has been extended by specialised banks that are largely funded by deposits guaranteed by the Norwegian Banks' Guarantee Fund.